The latest numbers show a market rich with buyer opportunities.

Hey, it's Parker with Pemberton Homes, brokered by EXP Realty. It doesn't matter where I go: The gas station, Target, Walmart, or my office; I get asked the same question. “What is the real estate market like this week?” And it's a good question because the market has changed so significantly, so quickly that we have to dissect it on a week-to-week basis.

In the last two weeks of October, rates are sitting between 6.5% and 7%. ARMs, which are adjustable rate mortgages, are sitting around 5%. There are multiple options out there, and banks are coming up with more creative ways for buyers to get into homes because traditional rates have risen so quickly.

“We are having to dissect this changing market on a
week-to-week basis.”

New listings in the Twin Cities are slightly outpacing the sold listings. What that means is that we have a very minor amount of new listings outpacing our sold listings, the ones that are closing on the markets today. So that means that inventory is growing, but in the Twin Cities, it's growing very slowly. Another thing regarding listings is that more listings are starting to expire, which hasn't really happened since about 2018. What that means is that the contract that the listing agent has with the seller hits its expiration date, and that listing goes inactive. Once it goes inactive, the seller has a couple of different options. They can either sit on it and stay, or they can rehire somebody else to list the property. A quick stat: 95% of canceled and expired listings end up coming back on the market and selling within six months.

I think as we turn through Thanksgiving, Christmas, and the New Year, we're going to see a surge in inventory, which is why we're telling our buyers to stay on their toes and alert for deals to come in this market with new listings rising and more opportunities out there for buyers. With buyer demand down, there will be some unbelievable opportunities to purchase homes during that time.

Additionally, the hottest price points that we have right now in the Twin Cities are between $250,000 and $500,000. These are the listing prices and the listing inventory that we're seeing selling at 100% or more than the average list price. Now, the second-best demographic is between $500,000 and $800,000. We're seeing a slight regression there. We're starting to see 98%, 99% of sales price, which means the market is actually regressing. The prices are coming down a little bit at that price point.

Lastly, homes worth $1 million or more are being significantly impacted by rates. There are fewer people that can afford them. Very simply, the payments are just outpacing what they can afford. So a million and up. We're starting to see some incredible deals happening. We're talking 5%, 10%, or even 15% off sales prices for those buyers looking to get into those upper-bracket homes. This, of course, is changing, like I said, week by week. So we'll be sure to keep you updated.

As always, have a great day. Please feel free to call or email me with any questions